Mayor outlines $33 million in projects, new local sales tax and utility transfers in State of the City address

The mayor delivered the 2025 State of the City address, telling residents and council members that Detroit Lakes completed major planning in 2025 and is preparing for more than $33 million in projects expected to begin construction in 2026.

Major projects the mayor listed include Westlake Drive phase 3, a new Detroit Lakes Pavilion, City Beach improvements, City Park improvements and the Washington Ballpark project. He said most of the funding for these projects will come from non-property-tax sources, including a local half-cent sales tax that began collecting on April 1, 2025 and is projected to generate over $17 million (sunsetting in 12 years or less).

The mayor highlighted transfers from the city electric utility ($681,000) and the municipal liquor store ($690,000) to the general fund in 2026, along with food and beverage tax receipts (about $580,000). He emphasized city fiscal health, noting double-A-minus ratings from Fitch and AA3 from Moody'9s following nearly $26 million in debt issued in 2025 for a new water tower and electric generation projects.

The address also reviewed construction and development highlights from 2025 (Heartland Trail completion, airport projects, DMRA improvements), noted that the water tower construction will be raised in spring with final demolition of the old tower later in the year, and said the public utilities advanced a jet substation and generation project. The mayor closed by thanking volunteers, staff and council and expressing optimism for 2026.